EU trade rules are damaging whiskey and dairy exports, according to firms on both sides of the Irish border.

Complex “rules of origin” requirements in EU trade deals are leading to tariffs on Irish whiskey bottled in the North or Irish cheese containing Northern Irish milk, if those products are then shipped outside the EU or UK.

The Irish Whiskey Association, Dairy Industry Ireland and the Dairy Council for Northern Ireland say the Irish Government needs to lobby the EU “much harder” to change its rules.

“We have been disappointed that the EU Commission, to date, has not seen willing to push the reform of rules of origin in upcoming trade negotiations and in new trade negotiations. There seems to be a reticence there from the EU commission,” William Lavelle, head of the Irish Whiskey Association, told the Seanad’s Brexit committee yesterday.

“We do need the Irish Government to push much harder.”

The European Commission has refused to change its rules to remove tariffs on UK flour imports containing foreign wheat, which are used by the bulk of Irish bakers.

Dairy and whiskey producers want the rule changes to apply in upcoming trade deals with New Zealand and Australia, and in existing deals when they come up for review.

But they see the most potential for growth in Asia, Africa and Latin America.

“Irish dairy is actually a ‘rest of world’ product, so those free trade agreements are absolutely integral to the continued support and success of dairy farmers north and south,” said Conor Mulvihill, director of Dairy Industry Ireland.

“This is an anomaly we feel the EU can, with political will, fix.”

It would effectively mean treating ‘mixed’ goods – those which cross the Border multiple times to be finished, bottled or processed – as EU goods in trade deals.

Over 10pc of Irish whiskey sold around the world last year contained components from distilleries on both sides of the border, while up to four billion litres of Irish and Northern Irish milk are ‘mixed’ in to products such as butter, cheese or cream liqueur for export.

Mike Johnston, chief executive of the Dairy Council for Northern Ireland, said at least a third of the milk produced north of the Border is sent south to be processed into cheese or other goods for export.